Too comfortable: Competition from e-commerce and big-box retailers will threaten industry revenue

Over the past five years, the Furniture Stores industry has slowly improved. Total furniture sales in Canada were down during the start of the five-year period due to the erratic performance of new residential construction, as Canadians have found purchasing homes increasingly difficult over the past five years. Consolidation is expected to slow over the next five years; nevertheless, operators will continue to find it difficult to compete. External competition from big-box and e-commerce retailers will continue to steal away customers and revenue from industry operators. At the same time, the housing sector in Canada is expected to cool and slow gains in income growth will contribute marginally to industry growth as consumers reduce their more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Markdowns and discounts will likely squeeze operators’ profit margins, forcing some small retailers to exit the industry
  • Impending interest rate hikes are also expected to weigh on consumers, as increasing interest rates hurt Canadians’ ability to meet their debt obligations
  • Rising household debt poses a distinct threat to long-term consumer spending
  • Industry Report - Industry Key Buyers Chapter

    The Furniture Stores industry in Canada has a low level of concentration with the three largest players expected to account for less than 40.0% of industry revenue in 2018. Of the top four companies, only two are expected to hold a market share of over 5.0%, accounting for a combined 35.2% share of revenue.Over the five years to 2018, the industry has undergone some consolidation as many of the industry's smaller players have been unable to keep their doors open when the country fell into a recession. Other operators merged during and in the aftermath of the recession to shore up revenue and fend off potential competition from foreign retail chains looking to expand into Canada. The...purchase to read more.

    Additional Insights for the Furniture Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Furniture Stores Industry are

  • Experienced work force
  • Attractive product presentation
  • Production of goods currently favoured by the market
  • IBISWorld analysts also discuss how external factors such as Housing starts and Per capita disposable income in the Furniture Stores industry impact industry performance..

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    What's in this report

    What is the Furniture Stores Industry?

    This industry sells household, outdoor and office furniture (except those sold in combination with office supplies and equipment), including living room, dining room and bedroom furniture, upholstered furniture, desks and home office goods, lamps, recliners, rugs and outdoor pieces.

    Industry Products
  • Household furniture
  • Kitchen cabinets and countertops
  • Office furniture
  • Institutional furniture
  • Industry Activities
  • Retailing household furniture
  • Retailing outdoor furniture
  • Retailing office furniture
  • Retailing mattresses
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Per capita disposable income
  • Consumer Confidence Index
  • Overnight rate

  • Current Performance
  • End of the expansionary road
  • Heightened external competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing market cooldown
  • Profit margins remain low
  • Table: Furniture Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Law Firms in Canada
  • Hotels & Motels in Canada
  • Colleges & Universities in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Furniture & Furnishings Wholesaling in Canada
  • Household Furniture Manufacturing in Canada
  • Office Furniture Manufacturing in Canada

  • Products & Services
  • Household furniture
  • Kitchen cabinets and countertops
  • Office furniture
  • Institutional furniture
  • Other
  • Chart: Furniture Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Furniture Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Furniture Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture Stores Industry

  • Industry Globalization
    Leon's Furniture Ltd., IKEA Canada LP,
  • Table: Leon's Furniture Ltd. - financial performance
  • Table: IKEA Canada LP - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Furniture Stores Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Store
  • A retail store that is differentiated by its large size and extensive range of products, including electronics, household goods and other consumer products.
  • Brick-And-Mortar Store
  • A store that has a physical presence and location, as opposed to an online retailer.
  • Upholstered Furniture
  • Furniture with leather or fabric covers, springs, webbing or padding, primarily in the form of chairs and sofas.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Furniture Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Furniture Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Furniture Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Furniture Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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